Editorial Commentary

Fannie and Freddie: A Tale of Two "Siffies"

The two mortgage giants are systemically dangerous.

It was the worst of times, back in 2008 and 2009, when frightened federal officials thought the whole financial system might collapse and they might be blamed if it did.

It was the best of times, last year and this year, when regulators regained courage and believed they had learned the lessons of the financial crisis. Imagining that nothing they did could harm the system, they aspired to secure it for the future by assuming immense...